PROJECT REPORT ON

PORTFOLIO MANAGEMENT & INVESTMENT PLANNING

IN ANAND RATHI SHARE & STOCK BROKERS LTD.

BY

AZAM BASIT RAZVI

MPBA 2ND YEAR

SUBMITTED TO

SYNERGY INSTITUTE OF MANAGEMENT PUNE-30

INDEX
Sr .no.
1 2 3 4 5 6 7 8 9 10 11 12

Particulars
Acknowledgment Executive summary Objective History Competitors Company profile Project methodology Finding Learning Conclusion Recommendation Bibliography

Page no.

ACKNOWLEDGEMENT

It gives me pleasure to express my most profound regards and sense of great indebtedness and sincere gratitude to my Company Guide Mr.Manish Toshniwal, branch manager

,Anand Rathi shares & securities ltd.shop no.9-11 shivkamal silvar Arch, Ram Nagar,Ausa Road, Latur(Maharashtra).
I would thank to my Mr.Sachin sir (share analysts ,A.S.S.B.Ltd,latur ) for his guidance in preparing this report . I would thank to my project mentor Mr.AHISH SHAHANE (online trader AXIS BANK,CHICHWAD,PUNE) for his guidance in preparing this report.

I would also like to thank my co employees who gave guidance and support during the completion of the project.

AZAM RAZVI

EXECUTIVE SUMMERY

OBJECTIVE

To learn about equity market. To learn to how to design investor portfolio.

Basically to understand the concept of portfolio

management and its relation to Investment planning Proper understanding & analysis of anand rathi securities Ltd. & competitors.

FINDING Company is more known for his less brokerage charges. Company is more known for his big network Anand rathi securities ltd. Is best financial services provider in the market.

ANALYSIS OF CUSTOMER ON THE BASIS OF: Professional status. Annual income. Investment portfolio. Awareness of De-MAT a/c

Analysis of competitors: Products. Online/offline trading account. Promotional activity. Strategies applied for achieving the objective: Individual marketing. Telemarketing. Personal selling, references. Conclusion Dealing with financial services marketing is very challenging job. Anand rathi securities ltd. Has many brand loyal customer. Company has to create an interest and awareness in people about share market. Anand rathi securities ltd. Is also known for its aggressive marketing.

OBJECTIVES

Proper understanding & analysis of anand rathi securities ltd. Products. To develop a knowledge in area of equity market. Proper understanding & analysis of anand rathi securities ltd. provided by them. Understanding & analysis about investment portfolio. Diffracts types of investment and his benefits . Investment on Dividends and interest.

HISTORY
HISTORY OF THE STOCK BROKERING INDUSTRY: Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830s business on corporate stock and share in bank and cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half dozen brokers recognized by bank and merchant during 1840 and 1850 .the 1850s witnessed rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American civil war broke out and cotton supply from United States of Europe was stopped; thus, the share mania in India begun .the number of brokers increased to about 200-250. However, at the end of the American civilwar, in 1865, a disastrous slump began (for example ,bank of Bombay share which had touched Rs.2850 could only be sold at Rs.87).at the end of American civil war ,the brokers who thrived out of civil war in 1874, found a place in a street (now appropriately called as dalal street) where they conveniently assemble and transact business. In 1887, they formally established in Bombay, the native share and stock brokers association (which is alternatively known as the stock exchange).

In 1895, the stock exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the stock exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchange were increased and at currently it reached to the figure of 24 stock exchanges.

History of Anand Rathi:

Anand Rathi shares and stock brokers ltd. (AR) is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporate and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. In year 2007 Citigroup Venture Capital International joined the group as a financial partner.

Equity & Derivatives Brokerage:

AnandRathi shares and stock brokers ltd. provides end-to-end equity solutions to institutional and individual investors. Consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established us a competent and reliable research unit across the country. Clients can trade through us online on BSE and NSE for both equities and derivatives. They are supported by dedicated sales & trading teams in our trading desks across the country. Research and investment ideas can be accessed by clients either through their designated dealers, email, web or SMS

Milestones:
1994: Started activities in consulting and Institutional equity sales with staff of 15. 1995: Set up a research desk and empanelled with major institutional investors. 1997: Introduced investment banking businesses. Retail brokerage services Launched.

1999: Lead managed first IPO and executed first M & A deal. 2001: Initiated Wealth Management Services. 2002: Retail business expansion recommences with ownership model. 2003: Wealth Management assets cross Rs 1500 crores. Insurance broking launched, Launch of Wealth Management services in Dubai. Retail Branch network exceeds 50.

 2004: Commodities brokerage and real estate services introduced, Wealth Management assets cross Rs 3000 crores, Institutional equities business relaunched and senior research team put in place, Retail Branch network expands across 100 locations within India. 2005: Real Estate Private Equity Fund Launched, Retail Branch network expands across 200 locations within India. 2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange (DGCX) , Ranked amongst South Asia's top 5 wealth managers for the ultra-rich by Asia Money 2006 poll, Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net worth Individuals (HNI) Category, Ranked 9th in the Retail Category having more than 5% market share, Completes its presence in all States across the country with offices at 300+ locations within India.

2007: Citigroup Venture Capital International picks up 19.9% equity

stake , Retail customer base crosses 100 thousand, Establishes presence in over 350 locations

DEVELOPMENT

An important early in the development of the stock market in India was the formation of the native share and stock brokers association at Bombay in 1875, the precursor of the present-day Bombay stock exchange. This was followed by the formation of association/exchange in Ahmadabad (1894), Calcutta (1908), and madras (1937).in addition, a large number of ephemeral exchanging times subsequently. In order to check such aberrations and promote a more orderly development of the stock market, the center government introduced

a legislation called the securities contracts (regulation) act, 1956. Under this legislation ,it is mandatory on the part of a stock exchange to seek government recognition. As of January 2002 there were 23 stock exchange recognized by the central government .they are located at Ahmadabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the madras stock exchange), cochin, Coimbatore, delhi, guwahati, Hyderabad ,Indore, jaipur ,Kanpur ,Ludhiana ,Mangalore ,Mumbai, (the national sock exchange or NSE ),Mumbai (the stock exchange) ,popularly called the Bombay stock exchange ,Mumbai (OTC exchange of India ),Mumbai(the interconnected stock exchange of India ),Patna ,Pune , and Rajkot .of course, the principal bourses are the national stock exchange and the Bombay stock exchange ,according for the bulk of the business done on the Indian stock market. While the recognized stock exchanges have been accorded a privileged position, they are subject to government supervision and control. The rule of a recognized stock exchange relating to the managerial powers of the governing body, admission, suspension, and re-admission of its members, appointment of authorized representative and clerks, so on and so forth have to be approved by the government. These securities contracts (regulation) act vests the government with the power to make enquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulation the stock exchange to the securities exchange board of india.

BSE INTRODUCTION
Bombay stock exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as the native share & stock brokers association in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956).BSEs pivotal and preeminent role in the development of the Indian capital market is widely recognized. it migrated from the open outcry system to an online screen-base order driven trading system in 1995. Earlier an association of persons(AOP) ,BSE is now a corporatized and demutualised entity incorporated under the provision of the companies ACT,1956, pursuant to the BSE (corporatization and demutualization )scheme ,2005 notified by the securities and exchange board of India (SEBI) with demutualization, BSE has two of worlds best exchange ,deutsche and Singapore exchange, as its strategic partners. Over the past 133 years, BSE has facilited the growth of the Indian corporate sector by providing it with an efficient access to resources .there is perhaps no major corporate in Indian which has not sourced BSEs services in raising resources from the capital market. Today, BSE is the worlds number 1 exchange in terms of the number of listed companies and the worlds 5th in transaction numbers. The market capitalization as on December 31, 2007 stood USD1.79 trillion. An investor can choose from more than 4,700

listed companies which for easy reference are classified into A, B, S, T and Z groups. The BSE index, SENSEX, is Indias first stock market index that enjoys an iconic stature, and is tracked worldwide .it is an index of 30 stock representing 12 major sectors. The SENSEX is constructed on a free-float methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX,BSE offers 21 indices, including 12 sect oral indices.BSE has entered into an index corporation agreement with deutsche borse.this agreement has made SENSEX and another BSE indices available to investors in Europe and America .moreover ,Barclays global investors in (BGI),the global leader in ETFs through its ishares brand,has created the ishares BSE SENSEX India tracker which tracks the SENSEX .the ETF enables investors in Hong Kong to take an exposure to the Indian equity market. The first exchange treaded fund (ETF) on SENSEX, called SPIcE is listed on BSE.it brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging arbitrage.SPIcE allows small investors to take a long-term view of the market. BSE provides an efficient and transparent market for trading in equity, debt instrument and derivatives .it has a nation wide reach with a presence in more than 359 cities and town of India .BSE has always been at par with the international standards. The system and processes are designed to safeguard market integrity and enhance transparency in operation.BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications. it is also the first exchange in the country and second in the world to

receive information security management system standard BS 7799-2-2002 certification for its BSE on-line trading system (BOLT). BSE continues to innovate. in recent times, it has become the first national level stock exchange to launch its website in gujrathi and Hindi to reach out to larger number of investors. it has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian corporate debt market and a unique ticker-cum-screen aptly named BSE broadcast which enables information dissemination to the common man on the street. In 2006, BSE launched the directors database and ICERS (Indian corporate electronic reporting system) to facilitate information flow and increase transparency in the Indian capital market. While the directors database provide a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporate in sharing with BSE their corporate announcements.

NSE Introduction
NSE(National stock Exchange) was incorporated in 1992 and was given recognized as a stock exchange in April 1993. It started operations in June 1994, with trading on the wholesale debt market segment. Subsequently it launched the capital market segment in November 1994 as a trading platform for equities and the futures and options segment in June 2000 for various derivatives instrument.

NSE has been able to take the stock market to the doorstep of the investors. The technology been harnessed to deliver the services to the investors across the country at the cheapest possible cost. it provide a nation wide ,screen based ,automated trading system ,with a high degree of transparency and equal access to investors irrespective geographical location .the high level of information dissemination through on-line system has helped in integrating retail investors on a nation wise basis .the standards have become industry benchmark and are being replicated by other market participated .within a very short span of time , NSE has been able to achieve all the objective for which it was set up. it has been playing a leading role as change agents transforming the Indian capital market are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investors services.

COMPETITORS
Major players:-

S.s.kantilal ishwarlal securities pvt, ltd.

(www.sharekhan.com) ICICI web trade ltd. (www.icicidirect.com)

5paisa .com (www.5paisa.com) Kotak securities ltd. (www.kotakstreet.com) India bulls.

(www.indiabulls.com)

Motilal oswal securities ltd. HDFC securities ltd.

(www.hdfcsec.com)

UTI securities ltd.

IDBI capital market pvt. Ltd. Refco sify securities pvt. ltd.

A/C Opening Fee

Brokerage Delivery Square off 0.50 0.10

Interface Bank Association with

HDFC, UTI, IDBI & CitiBank

Parameters

Trading A/C 750

DeMAT

Sharekhan

NIL

ICICI Bank

750

NIL

0.75

0.18

ICICI Bank

India Bulls

750

250

0.40

0.10

NA CitiBank,

5 Paisa

800

NIL

0.20

0.05

HDFC, UTI & ICICI Bank Kotak Bank & CitiBank HDFC & Other Bank

Kotak Street

500

NA

0.59

0.06

HDFC Securities

700

NIL

0.50

0.15

S. S. KANTILAL ISHWARLAL SECURITIES PVT, LTD. (SHAREKHAN.COM):

Share-khan, Indias leading stock brokers is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decade of broking experience .a research and analysis team is constantly working to track performance and trends. Thats why share khan has the trading products, which are having one of the highest success rates in the industry .share khan is having 240 SHARE SHOP IN 110 CITIES; the largest chain of retail share shop in India is of share khan.

ICICI WEB TRADE LTD.

ICICIDIRECT.COM WAS THE FIRST ENTRANT INTO E-BROKING. ICICIdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their De-MAT account to their brokerage account electrically. this integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their De-MAT account automatically without writing any cheques or transfer instruction while carrying out their trades in share. ICICIdirect.com has the option of trading in shares in cash, margin or spot segment. An investor can also invest in 14 mutual fund (prudential ICICI MF, Franklin Templeton India MF, Alliance capital MF, JM MF, standard chartered MF, reliance capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account. ICICIdirect.com doesnt provide the facility of trading in a traditional way

5 PAISA.COM: 5paisa is the trade name of India info line securities Pvt.Ltd. (5paisa), member of national stock exchange and the stock exchange, Mumbai. 5paisa is a wholly owned subsidiary of India info line ltd. Indias leading and most popular finance and investment portal.5paisa has emerged as one of leading players in e-broking space in India. The companys brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India info line investor point are available across the country. India info line was founded by a group of professionals in 1995.its institutional investors include Intel capital, one of the leading technology companies in the world promoted by the UK government ,ICICI,TDA and Reeshaner. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

KOTAK SECURITIES LIMTED (kotakstreet.com):

Kotak securities ltd., A strategic joint venture between kotak Mahindra bank and Goldman Sachs (holding 25%- one of the worlds leading investment bank and brokerage firm) is Indias leading stock broking house with a market share of 5-6%.kotak securities ltd.has been the largest in IPO distribution it was ranked number one in

2003-04 as book running lead managers in public equity offering by prime database .it has also won the best equity house award from finance asia-april 2004. Kotak securities ltd.is also a depository participant with national securities depository limited (NSDL) and central depository services limited (cdsl) providing dual benefit services wherein the investors can use the brokerage services of the company executing the transaction and the depository services for setting them. The company has online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment. Kotak securities limited manages asset over 1700cr. Under portfolio management services (PMS) which is mainly to the high end of the market. Kotak securities ltd.has newly lunched kotak infinity as distinct discretionary portfolio management services which looks into the middle end of the market.

INDIA BULLS:
India bulls is Indias leading retail finance services size and strong balance sheet allows providing varied products and services at very attractive price, our over 750 client relationship managers are dedicated to serving your unique needs. India bulls is lead by a highly regarded management team that has invested corers of rupees into a world class infrastructures that provide real-time services & 24/7 access to all information and product .the INDIA BULLS PROFESSINAL NETWORK. Offers realtime prices, detailed data and news, intelligent analytics, and

electronic trading capabilities, right at your finger-tips .this powerful technology is complemented by our knowledgeable and customer focused relationship managers. India bulls offers a full range of financial services and products ranging from equities, derivatives, demat services and insurance to enhance wealth and to achieve the financial goals. MOTILAL OSWAL SECURITIES LTD. (MOSt): One of the top-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best capitalized firms in the broking industry in tears of net worth. MOSt was founded in 1987 as a small sub broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research based value investing and implementations of cutting edge technology have enabled it to blossom into a thousand-member team. The institutional investors (flls) in the US, UK Hong Kong and Singapore .in a recent media report MOSt was rated as one of the top 10 brokers in terms of business transacted for flls. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides advice-based broking, portfolio management services (PMS), E-broking services, depository services, commodities trading, IPO and mutual fund investment advisory services. Its value PMS scheme gave a 160% post tax return for the year ended march 2004.

In Asia money brokers poll 2003 mOSt has rated as the best domestic research house and second best amongst Indian brokerage firms respectively.

HDFC SECURITIES LTD (HDFC SEC):HDFC securities is a brand brought to your by HDFC securities ltd, which has been promoted by the HDFC bank and HDFC with the objective of providing the diverse customer base of the HDFC group and other investors a capability to transact in the stock exchange and other financial market transaction .the service comprise online buying & selling of equity shares on the national stock exchange (NSE) .buying & selling of the select corporate debt and government securities on the NSE would be introduced in a subsequent phase. In a few month ,they will also start offering the following online trading services BSE & NSE: 1. 2. 3. 4. Buying and selling of the shares on the BSE. Arbitrage between BSE & NSE. Trading in derivatives on the NSE. Margin trading products. They are also planning to include buying and selling of mutual fund, IPO subscription ,right issues, purchase of insurance policies and asset financing.

UTI SECURITIES LTD:(UTISEL): UTI securities ltd Was incorporated in June 24, 1994 by unit trust of India as a 100% subsidiary on the repealing of the uti act, the capital is now held by the administrator of the specified undertaking of the unit trust of India (ASUUTI). UTI securities have been working as an independent professional entity for providing financial intermediary and advisory services to its corporate and retail clientele. The company has presence in major cities with 20 branches & 50 franchisees to service a wide range of clients. The company has also invested in the joint-venture company with standard charted bank viz. standard charted UTI securities (p) ltd. That is engaged in primary dealership and government securities. The company is very soon going to start commodity trading through its subsidiary, USEc commodities ltd, which provide facility of commodity trading on NCDEX andmcx

IDBI CAPITAL MARKET SERVICES LTD: IDBI capital is a leading Indian securities firm offering a complete sutie of products and services to individual, institutional and corporate clients. IDBI capital market services ltd. (IDBI capital), a wholly owned subsidiary of industrial development bank of India(IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual , institutional and corporate clients. the services include fixed income trading ,

equities brokerage, debt and equities derivatives , research, private placement, depository services , portfolio management and distribution of financial products. Over the last five years, we have emerged as a leading player in each of these business.

March 1995-commenced equity broking on NSE CM segment. July 1995 built agent distribution network across the country. October 1996 commenced debt broking on NSE WDM segment. December 1996 started operation as a depository participant. 1996 started to act as arranger to privately placed bond issues. April 1998- commenced operations as a portfolio manager. February 1999 acquired memberships of BSE, Mumbai. November 1999 started operations as a primary dealer. June 2000 acquired derivatives membership of BSE & NSE. March 2002 achieved an outright secondary market turnover exceeding Rs.1, 00,000. October 2002 commenced trading in interest rate swaps.

REFCO SIFY SECURITIES INDIA PVT LTD:

REFCO SIFY SECURITIES PVT LTD. headquartered in Mumbai, is a joint venture between the refco groups holding ltd, USA; and satyam info way limited (NASDAQ:SIFY) to offer online and offline equity and derivative trading for retail customers as well as execution and clearing services for financial institutions. Refco also provides clients with prime brokerage services, fixed income , equities, foreign exchange, OTC derivative and asset management. Refco is a leader in providing clients with the latest technological advances in products and services. Its proprietary system and global infrastructure provide the flexibility to meet all client requirements.

TRADITIONAL BROKING:
Traditionally in stock market, the investors invest their money in shares under the guidance of the brokers of any stock brokers company. this is convenient to those investors who are not familier with the computer and the use of internet. But it requires more dealers to the share broking companies to give guidance related to investment. There was a chance of inaccuracy of price because it is a time consuming process. The cost of the company also increases due to more paperwork .the

investor point of view, there was a problem of privacy. The information of the investor may leak by the broker. So, to remove this limitations of traditional broking, there was an emergence of new concept of e- broking.

E-BROKING:
Today is world of technology. So, the person who adopt it, get the success. So, E-broking means broking through electronic means. E-broking is the broking in which the investors who are familiar with the use of computer and internet they directly trade in stock market. they trade any time at any place when the stock market is open. The cost of transaction is also reducing with time. The investors have a large range of option for the trading. it is a paperless transaction so it reduces the cost of company. There was a facility of live streaming quotes, which give exact price of share which prevailing in the market at the time. There are two types of online trading services : DISCOUNT BROKER AND FULL SERVICE BROKER. Discount online brokers allow you to trade via internet at reduced rates. Some provide quality research, other dont. Full services online brokerage is linked to existing brokerage. This brokerage allow their client to place online orders with option of talking/chatting to brokers if advice is needed

Brokerage rates here are higher. Online trading is still in its infancy stage in India. With trading trade turnover at around Rs.10 corers per day from online trading compared to a combined gross turnover of around Rs.9000-10000 crores handled by the BSE and NSE together , online trading has a long way to go.

INTERNET TRADING IN INDIA:

In the past , investors have no option but to contact their broker to get real time access to market data. The net brings data to the investors on line and net broking enable him to trade on a click. Now information has become easily accessible to both retail as well as big investors. The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on their sites features such as live portfolio manager, live quotes market research and news to attract more investors. 2. Brokers offering online broking and relationship management by providing and offering analysis and information to investors during broking and nobroking hours based on their profile and needs, that is customized services. 3. Brokers (now e-brokers) will offer value management or services such as initial public offering online, asset allocation , portfolio management , financial planning,

insurance services and enable the investors to take better and well- considered decisions In the US, 82% of the deals are done online. The European online broking market is expected to be of $8 billions and is likely to rise five fold by 2002. In India , presently internet trading can take place through the order routine system, which will route client orders to exchange trading system for execution of trade on stock exchange (NSE and BSE) . This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities.

COMPANY PROFILE
Anand rathi is a leading full services securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. Anand rathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management , investment banking , corporate advisory, brokerage and distribution of equities , commodities, mutual funds insurance, structured products-all of which are supported by powerful research teams. The firms philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups : individuals , private clients, corporate & institutions and was recently ranked by Asia money 2006 poll amongst south Asias wealth managers for the ultra-rich. In year 2007 citigroup venture capital international joined the groups as a financial partner. Company charged between 0.5 % to 35% for delivery trades and between 0.03% & 0.08% non delivery trades.

What is Portfolio Management?

An investor considering in securities is faced with the problem of choosing from among a large number of securities. His choice depends upon the risk return characteristics of individual securities. He would attempt to choose the most desirable securities and like to allocate his funds over this group of securities. Again he is faced with problem of deciding which securities to hold and how much to invest in each. The investor faces an infinite number of possible portfolios or groups of securities. The risk and return characteristics of portfolios differ from those of individual securities combining to form a portfolio. The investor tries to choose the optimal portfolio taking into consideration the risk return characteristics of all possible portfolios.

Portfolio services
Breadth of Services In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of financial services ranging from brokerage services in equities and commodities, distribution of mutual funds, IPOs and insurance products, real estate, investment banking, merger and acquisitions, corporate finance and corporate advisory. Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs.
Management Team

AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience.
In-Depth Research Our research expertise is at the core of the value proposition that we offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common to go far deeper than others, to deliver incisive insights and ideas and be accountable for results. Transparency A R team provides to his customers transparency in customer portfolio. Tel-calling On Telephone also you can manage your portfolio . Finance A R Is also providing personal finance for his investor. Service charges A R is well known for lower brokerage and it is also very less charge for service charge.

Portfolio and research objects

Aging: In different investment sectors manage to reduce risk .

To evaluate investment performance of selected mutual funds in terms of risk and return. To evaluate and create an ideal portfolio consisting the best investments and mutual fund schemes which will earn highest possible returns and will minimize the risk. Basically to understand the concept of portfolio management and its relation to different investments and mutual funds.

Also to analyze the performance of mutual fund schemes

on the basis of various parameters.

To interact with the Securities and Exchange Board of

India (SEBI) and to represent to SEBI on all matters concerning the investment industry. and other bodies on all matters relating to the investment Industry.

To represent to the Government, Reserve Bank of India

 To develop a cadre of well trained Agent distributors

and to implement a programme of training and certification for all intermediaries and other engaged in the industry. programme so as to promote proper understanding of the concept and working of investments .

To undertake nationwide investor awareness

Phases of Portfolio Management:

Security Analysis Portfolio Analysis Portfolio Selection Portfolio Revision Portfolio Evaluation

Security Analysis
(a) Fundamental analysis: This analysis concentrates on the
fundamental factors affecting the company such as EPS (Earning per share) of the company, the dividend payout ratio, competition faced by the company, market share, quality of management etc. (b) Technical analysis: The past movement in the prices of shares is studied to identify trends and patterns and then tries to predict the future price movement. Current market price is

compared with the future predicted price to determine the mispricing. Technical analysis concentrates on price movements and ignores the fundamentals of the shares. (c) Efficient market hypothesis: This is comparatively more recent approach. This approach holds that market prices instantaneously and fully reflect all relevant available information. It means that the market prices will always be equal to the intrinsic value.

Portfolio Analysis:
A portfolio is a group of securities held together as investment. It is an attempt to spread the risk allover. The return & risk of each portfolio has to be calculated mathematically and expressed quantitatively. Portfolio analysis phase of portfolio management consists of identifying the range of possible portfolios that can be constituted from a given set of securities and calculating their risk for further analysis.

Portfolio Selection
The goal of portfolio construction is to generate a portfolio that provides the highest returns at a given level of risk. Harry Markowitzh portfolio theory provides both the conceptual framework and the analytical tools for determining the optimal portfolio in a disciplined and objective way.

Portfolio Revision

The investor/portfolio manager has to constantly monitor the portfolio to ensure that it continues to be optimal. As the economy and financial markets are highly volatile dynamic changes take place almost daily. As time passes securities which were once attractive may cease to be so. New securities with anticipation of high returns and low risk may emerge.

Portfolio Evaluation
Portfolio evaluation is the process, which is concerned with assessing the performance of the portfolio over a selected period of time in terms of return & risk. The evaluation provides the necessary feedback for better designing of portfolio the next time around.

Measurement of risk
Risk refers to the possibility that the actual outcome of an investment will differ from the expected outcome. In other words we can say that risk refers to variability or dispersion. If any investment is said to invariable it means that it is totally risk free. Whenever we calculate the mean returns of an investment we also need to calculate the variability in the returns.

Variance and Standard Deviation

The most commonly used measures of risk in finance are variance or its square root the standard deviation. The variance and the standard deviation of a historical return series is defined as follows:

Beta
A measure of risk commonly advocated is beta. The beta of a portfolio is computed the way beta of an individual security is computed. To calculate the beta of a portfolio, regress the rate of return of the portfolio on the rate of return of a market index. The slope of this regression line is the portfolio beta. It reflects the systematic risk of the portfolio.
[

ANAND RATHIS PRODUCTS:

equities /bond/mutual fund/derivatives managed investment services/PMS commodities forex trading life insurance general insurance alternative assets private equity funds structured products real estate opportunities fund special situation opportunities offshore structures & global investment

services:

portfolio managment creation of a customized financial strategy diversification of asset based on a formal process of asset allocation active tracking , monitoring and review of portfolio creations of private trusts tax planning estate planning structuring of family wealth

EQUITY & DERIVATIVES BROKERAGE:

Anand rathi provide end to end equity solution to institutional and individual investors. Consistent delivery of high quality advice on individual stock, sector trends and investment strategy has established us a competent and reliable research unit across the country. Clients can trade through us online on BSE & NSE for both equities and derivatives. They are supported by dedicated sales & trading teams in our trading desks across the country. Research and investment ideas can be accessed by clients either through their designated dealers, Email, web or sms.

BOARD OF DIRECTORS:
Anand rathi
(Founder & chairman)

Prior to establishing his own company, Mr. Rathi headed Indian rayon & industries, as senior president. He has held a series of responsible positions with the Birla group and was also instrumental in setting up of Birla global finance. In his 40 years of being in the corporate world, Mr. Rathi has held several key positions on various regulatory and professional boards, including, president, Bombay stock Exchange (BSE) And member, central council of institute of chartered Accountants (ICAI). As president of BSE, Mr. rathi played a key role in the expansion plan of bolt, the online trading system of the exchange and setting up of the trade guarantee fund. He was the moving force behind setting up of the central depository services ( India ) ltd. he is a gold medalist chartered Accountant.

PRADIP GUPTA ( CO-FOUNDER & VICE CHAIRMAN)

With over twenty years experience in the securities market. Co-founder and key driver of the retail and institutional equities business of the group.

AMIT RATHI (MANAGING DIRECTOR

A rank holder chartered accountant and an MBA from Leonard N.stern school of Business; New York university joined the group in 1998. He was instrumental in establishing the groups private wealth management and investment banking business. Calling him a financial guru, the times of India group, listed Amit in 2008 amongst the top 51 young marwaris in India (under the age 40).

PG KAKODKAR (DIRECTOR)
Former chairman of state Bank of India. director in financial technologies (India). Director in sesa goa ltd. director in SBI funds management Pvt,ltd & the multi commodity exchange of India ltd and a M.A. in economics.

DR. SA DAVE (DIRECTOR)

Former chairman securities & exchange board of India (SEBI) and deputy director of the RBI. Former chairman unit trust of India (UTI). Member of general committees of government of India & financial reforms and chairman CMIE 1998 till date. And a M.A. (USA) with PH D in economics.

CD ARHA (DIRECTOR)
Formerly securities in the union ministry of mines. Special secretary & additional secretary in the ministry of coal. Resident chief information commissioner- AP (right to information Act). Commissioner civil supplies (AP). Chairman & MD, APSEC. With a M.A. (History) and diploma management & administration of rural development.

AJIT BHUSHAN (DIRECTOR) Managing director Cities venture capital London over 17 years experience with Cities. Joined CVC international in 2001. Worked on strategy and business development for Citibank in CEEMEA region and managed cash management business for Citi in Poland and India. B tech (IIT Delhi) and an MBA (IIM Ahmedabad).

SERVICES OFFERING
Advisory:
our advisory business serves as an independent sounding board and advsor on every strategic, financial and operational issue our clients face in the daily management of their businesses.we view our clients as partners , which ultimately means that our focus and dedication extends far beyond that of traditional investment banking advisory services-and includes a commitment to senior level focus .over the course of their careers,members of our senior team have advised on over $30 billion in transactions. Exploring ,evaluting and recommending financial strategic alternatives Assesing potential acquires and target providing valuation analyses. Negotiating and consummating transaction. Advising on transaction structuring ,timing,pricing and potential financing. providing fairness opinions

PRIVET EQUITY
Extensive knowledge and coverage of the private equity community not just in india but around the world allows Anand Rathi to bring strong propritery investment ideas to financial sponsors and to optimize outcome through identifying high-quality financial buyers for our middle-market clients.we have built aspecialized practice in advising private equity firms that want to invest in india but do not have a presence here.

 Exploring value maximization strategies. Developing company positioning and all documentation for potential buyers. Developing buyers lists and managing all communication with potential buyers. managing due diligence,data rooms, site visits and all buyer investigations. Evaluatinf bids and negotiating and executing final transaction and documentation.

RESTRUCTURING:
Our dedicated,experienced corporate restructuring team can assist debtors and creditors with restructuring leverage in a dynamic,global economy by drawing on our deep industry knowledge and broad network of commercial bankers, private equity leadership and hedge fund managers. developing the comprehensive restructuring and reorganization plan and assisting in the court administered approval process. advising on the ultimate structuring of a potential sale or recapitalization.

CAPITAL MARKETING:

AnandRathi is a leading underwriter of public offering and private placement for middle-market companies in india.Were known for our innovative financing solution that support complex corporate strategies ,as well as our long-standing client relationship .our capital markets business seeks to leverage our operational expertise and world class institutional and retail distribution platforms to partner with existing owners and management to maximize value at the time of a public or secondary market offering . over the course of their careers, members of our senior team have raised over $20 billion in equity and debt capital for companies around the world.
Assessing a companys optal capitalization and sources of

incremental capital Developing a target investor group of effectively positioning the companys story to the investor community. preparing all investor materials and managing all communications with potential investors. Managing the due diligence process and all investors inquiries. Assisting with necessary documentation to expeditiously execute a successful capital raising. Assessing the most appropriate group of investors to assist the company in its long-term plan.

INDUSTRY COVERAGE:
Focusing on a select group of core industries , our investment bankers gain deep sector knowledge and extensive transaction experience that allow us to generate relevant ideas that help your business maximize opportunities.

Sectors served:
industrial and capital goods consumer services technology telecom media retail Natural resources financial institutions professional services Education clean Energy Healthcare

HOW TO OPEN ACCOUNT?

Opening online stock trading account with Anand Rathi ltd. Is easy . simply fill a form online at below address and somebody from Anand Rathi ltd. Will contact you. Click here to open an account with Anand Rathi ltd.

ADVANTAGES OF ANAND RATHI LTD?

1. Extra security features. 2. Simple, easy and fast online stock trading. 3. Almost all investment option are available under one account including Equity trading, derivative,forex,commodity,IPO, mutual fund and insurance. 4. Branches are available in all major cities and the number is growing.

ANAND RATHI SHARES & STOCK BROKER LTD. Demat & trading A/c opening document
PHOTO PROOF: 1. 2. 3. 4. 5. PAN card Bank pass book Driving license Pass port Voter id

ADDRESS PROOF: 1. 2. 3. 4. 5. 6. 7. Bank pass book Driving license Pass port Ration card Bank statement Voter id Telephone bill (recent before 2 month)

8. Electricity bill (recent before 2 month) BANK PROOF: 1. Bank pass book 2. Bank statement Passport size photo-2 Rs.436 chq forAnand Rathi financial services ltd as A/c opening charges. All document in 2 Xerox copies as self attested Account opening charges (AOC): Note: 2 cheques favoring Anand Rathi securities ltd. Rs.750/-Account opening fees. Rs.5000/-margin amount for trading. Contact information: Website: www.anandrathi.com Email: customercare@anandrathi.com Phone: +91-22-4047 7000.

PRODUCTS OF ANAND RATHI:

IPOs:
We are a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the primary market, a wide network of branches across India, strong distribution capabilities and a dedicated research team We have been consistently ranked among the top 10 distributors of IPOs on all major offering. Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. Online filling of forms is also available.

Forex:
Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you may buy US dollars and sell Euros or you buy uk pounds sterling and sell japanese yen.

Personal finance:
There are good times and bad times during every stage of our lives , and being financially prepared to face all king of situation makes the journy of life a lot easier and certainly more comfortable.

EQUITY & DERIVAIVES BROKERAGE

Anand rathi provides end-to-end equity solution to institutional and individual investors .consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established us a competent and reliable research unit across the country. Clients can trade through us online on BSE and NSE for both equities and derivaties.they are supported by dedicated sales & trading team in our trading desks across the country. Research and investment ideas can be accessed by clients either through their designed dealers, Email or SMS.

DEPOSITORY SERVICES
AR depository services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. Our depository services include settlement clearing and custody of securities ,registration of share and dematerialization .we offer you daily updated internet access to your holding statement and transaction summary.

COMMODITIES
Commodities broking a whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior

returns for investors Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. Commodities broking is supported by a dedicated research cell that provide both technical as well as fundamental research .our research covers a broad range of traded commodities including precious and base metals, oils and oilseeds, agri-commodities such as wheat,chana ,guar , guar gum and spices such as sugar, jeera and cotton. In addition to transaction exection, we provide our client customized advice on hedging strategies, investment ideas and arbitrage opportnities.

INSURANCE BROKING
As an insurance broker ,we provide to our clients comprehensive risk management include identification ,measurment and assessment of the risk and handling of the risk ,of which insurance is an integral part.the firm deals with both life insurance and general insurance products across all insurance companies. Our guiding philosophy is to manage the clients entire risk set by providing the optimal level of cover at the least possible cost. The entire sales process and product selection is research oriented and customized to the clients needs. We lay strong emphasis on timely claim settlement and post sales services.

Our services:
Risk management

 Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement

IPOs
we are a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the primary market, a wide network of branches across India , strong distribution capabilities and a dedicated research team we have been consistently ranked among the top 10 distributors of IPOs on all major offering . our IPO research team provides clients with in-depth overview of forthcoming IPOs as well as investment .online filling of forms is also available.

Currencies
Anand rathi is an established market leader in the exchange traded currencies in India ,which delivers a consistent unparallel services and advice in the rupee and other currencies . it offers various solution to varied need of the currency clients across the business segment . we offer complete hedging solution to the end clients and help corporate in planning their remittances and receivables . you can be rest assured that we have all the capabilities of replacing your banker in your currency hedging needs.This offers an all new segment to the trading community , the recently opened

rupee/dollar is an excellent instrument for the retail investors with less amount of margin (low entry barrier), limited volatility, lower transaction costs and high transparency. We at anandrathi , thrive to give you trade .with a single account you can rupee/dollar on NSE and MCX-SX

De-MAT
Just as you have to open an account with a bank if you want to save your money ,make cheque payment etc,you need to open a demat account if you want to buy or sell stocks.so it is just like a bank account where actual money is replaced by shares.you have to opproch the DPs (remember,they are like bank branches),to open your demat account.

PROJECT METHODOLOGY
The objectives of coustomers survey was done to understand customers trading preference towards online equity trading . other objectives of the study was find to the overall perception of the customers about the system and what motivates people to go for online trading.

DATA COLLECTION
Both primary as well as secondary data were collected. Primary data were collected by means of suitable questionnaire followed by

interview of willing coustomers .other relevant information was collected from internet and company records.

REVIEW OF LITERATURE
Brining together under one site all the relevant factors to enable to inform investment is what online trading is all about. There are several terms which are commonly used for online share trading .

Dmat A/c:
This is a account where dematerialization take place. Dematerialization is the process by which physical certificates of investor are converged to an equivalent number of securities from and credited into the investors account with his/her DP.

DP:
A depository participant is an agent of the depository through which it interfaces with the investor .DP can offer a depository service only it gets proper registration from SEBI.

DEPOSITORY:
A depository is an organization which holds securities of investors in electronic form at request of the investors through a registration depository participant .it also provides services related to transaction in securities.

SAVING A/C:
This is a regular bank A/c which is linked to D Mat A/c and trading A/c required amount of money is used for trading from saving A/c

 Trading A/C:
This is a A/c through which actual trading i.e. buying and selling takes place. In online share trading all three account are interlinked.

FINDINGS
It was found from the study and analyses that Anand Rathi is one of the best financial services provider in the market

48% respondents reflected confidence and optimism in the context

of their investments.

The most of coustomer get information of Dmat A/c from executive. Effective personnel selling process is become important task for generating or promoting task. Brokers advice matters to as much as 32% of the people. Major
part of people preferred self-evaluation as best.

The most important thing was found that Anand Rathi is also known for its less brokerage changes comparing with competitors charges.

LEARNING
Knowledge of responsibility Knowledge of our competitors Be a good listener Important of Talkative persons Think in terms of client interest Knowledge of financial instrument Self-confidence Knowledge of financial market.

CONCLUSION:
1. Due to effective personnel selling process business of Anand rathi is directly promoted. 2. Advertising is proper channel of sales promotion.

3. The servey led to the observation that a large number of coustomers are aware of Anand rathi in case of Dmats A/c

4. Thus after the survey it can be inferred that, yes Anand Rathi is defiantly popular in the market as a brand 5. It has got many brand loyal customer and offering better services than other in case of Dmat A/c mutual fund.

RECOMMENDATIONS
To developing awareness to get more prospectuses, also increase in satisfaction among the customer: 1. Anand rathi bank should come with more innovative schemes for D mat A/c 2. The lengthy procedure of documentation i.e. verification ,disbursement should be made easier 3. After activation of De-mat A/c a regular feedback (i.e. after sale service) needs to be taken in order to ensure that the customer has no problem. 4. Proper communication channel should be established to make the customer aware of new scheme launched by Anand rathi 5. Anand rathi should offer new attractive product to focus on more customers by considering the market survey 6. Most of the people are not much aware about all the financial services, so there is need of sale promotion and advertisement of Anand rathi to make awareness among people about the service available at Anand rathi. 7. The companies should introduce attractive scheme for retired person. 8. Company should minimize processing fee and time 9. Company should simply procedure for applying and repayment.

Bibliography

www.google.com www.anandrathi.com www.money.com financial magazine